The only arrow they had left in their quiver was to THREATEN to raise rates. Actually DOING it was not a good thing. I am under the impression that they already have undone their raise, just not officially. The rates now are just the “sale price”.
I’m confused. Two FMOC meetings ago, the fed choose not to raise rates and the market went down because that was perceived as saying the economy wasn’t doing well enough to raise rates. The last FMOC meeting, the fed raised rates and now the market is down because the economy isn’t doing well enough to raise rates?
What am I missing? Other than the fact that no one knows why the market is ever up or down but a lot of people want to go on TV and pretend they do.
If the Fed turns around so soon and drops rates, they’re going to look clueless (and the not-so-secret is they are).
Wouldn’t do much good to undo it. The bond collapse will eventually happen anyway.